WASHINGTON (dpa-AFX) - The U.S. dollar turned in a mixed performance on Friday with traders reacting to the latest batch of economic data, the comments from Fed officials, and assessing the likely path the Fed will take with regard to interest rates.
Data from the Labor Department on Thursday showed U.S. consumer inflation edged down by 0.1% in December after inching up by 0.1% in November.
The annual rate of consumer price growth slowed to 6.5% from 7.1% in November, marking the smallest increase since October 2021.
In economic news today, the University of Michigan said its consumer sentiment index jumped to 64.6 in January from 59.7 in December. Economists had expected the index to inch up to 60.5.
With the much bigger than expected increase, the consumer sentiment index reached its highest level since hitting 65.2 in April 2022.
'Consumer sentiment remained low from a historical perspective but continued lifting for the second consecutive month, rising 8% above December and reaching about 4% below a year ago,' said Surveys of Consumers Director Joanne Hsu.
The report also showed a continued decrease in one-year inflation expectations, which tumbled to 4% in January from 4.4% in December, falling for the fourth straight month.
The dollar index, which dropped to 101.99 in the Asian session, climbed to 102.65 before paring gains. It was last seen at 102.19, down slightly from the previous close.
Against the Euro, the dollar is up at 1.0832, firming from 1.0854.
The dollar is down at 1.2234 against Pound Sterling, easing from 1.2212.
Against the Japanese currency, the dollar weakened to 127.88 yen from the previous close of 129.30 yen.
The dollar is down slightly against the Aussie at 0.6976. Against Swiss franc, the dollar is weak at CHF 0.9265. The loonie is weak against the dollar at C$1.3395, easing from C$1.3371.
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